I Was Wrong About BlackBerry

Way back in August 2011, I made a bold prediction after Research In Motion -- aka BlackBerry (NASDAQ: BBRY  )  -- took a shot at social music. The smartphone maker had announced a new BBM Music service in an attempt to leverage the large user base of its popular BBM messaging service.

The gist was this: For a $5-per-month subscription, users could pick up to 50 songs of their own, and also listen to songs picked by friends and contacts. The more people you knew, the more songs you had access to. It was a rather strange value proposition, which is why I predicted: "One year from today, BBM Music will be gone, dismissed as a failed experiment, while Research In Motion's market share drops into single-digit territory."

I was wrong about BBM Music.

BlackBerry has just now notified current subscribers that it is killing the service effective June 2. This month will be the last time customers are billed, and the service will slowly wind down over the next two months. BlackBerry points to Rdio as an alternative music service to consider. It took more than one year for BlackBerry to throw in the towel on this, and the service will have run for nearly two years by the time it's shuttered.

BBM Music simply had no chance against incumbent music services. While Apple (NASDAQ: AAPL  ) dominates digital music sales, even the Mac maker's social overtures with Ping fell flat. For what it's worth, BBM Music lasted nearly as long as Ping did. Apple buried Ping shortly after its second birthday.

Eventually, Apple realized it was best to leave the social stuff to a social network, which is why it partnered with Facebook (NASDAQ: FB  ) for most of its social needs. Facebook's partnership with Spotify is probably the most compelling social music service, since both services start at the attractive price point of free. For exactly $0, users get access to Spotify's massive library that's quite a bit more than 50 songs, and can easily check out what friends are listening to.

As far as my market share prediction goes, that actually came to fruition almost immediately. BlackBerry's global market share would slip into single-digit territory in Q4 2011, when it grabbed 8.2% of smartphone shipments, according to IDC's estimates.

You win some, you lose some.

After the world's most hyped IPO turned out to be a dunce, most investors probably don't even want to think about shares of Facebook. But there are things every investor needs to know about this company. We've outlined them in our newest premium research report. There's a lot more to Facebook than meets the eye, so read up on whether there is anything to "like" about it today, and we'll tell you whether we think Facebook deserves a place in your portfolio. Access your report by clicking here.


Read/Post Comments (5) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 04, 2013, at 10:20 PM, TimKnows wrote:

    Who cares.

  • Report this Comment On April 04, 2013, at 10:45 PM, eidsonb wrote:

    And this is news why? Its Killing yall that the Z10 is a success and that the Q10 is gonna be HUGE..

  • Report this Comment On April 04, 2013, at 11:04 PM, SyDVooh wrote:

    Another nail in the BBRY coffin.

  • Report this Comment On April 05, 2013, at 7:29 AM, eidsonb wrote:

    Really @svDVooh....guess you didnt see the quarterly results....no nails here

  • Report this Comment On April 05, 2013, at 12:19 PM, SyDVooh wrote:

    @eidsonb: The quarterly results will equal the annual results. Anyone who wanted a Z10, bought it and no one else wants it. The Q10 will be DOA. How many people want that retro antique? Stop the BBRY pumping already.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2347107, ~/Articles/ArticleHandler.aspx, 9/20/2014 12:19:15 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement